The New Year is a great time to turn over a new financial leaf and make lasting changes.  As the year draws to a close, it’s a good time to review your finances and consider ways to make improvements.  However, when you are burdened with unmanageable debts, getting a fresh start and working towards the future can be daunting.  When debt is holding you back from your new beginning, bankruptcy may be the right solution.  Here are some ways bankruptcy can help you start over in the New Year:

Filing for Bankruptcy can be a Relief

Deciding to file for bankruptcy can be intimidating but after the process begins you are the road to resolving your debts and developing better financial habits.  For those who qualify, filing under Chapter 7 will permit the debtor to discharge all of their qualifying debts.  Individuals who file under Chapter 13 will enter into a repayment plan to satisfy their obligations.  Taking this definitive step to deal with your debts can help relieve the stress which comes from not being able to pay your bills.

The Automatic Stay can Help You Re-group

As soon as you file for bankruptcy the automatic stay goes into effect.  This is important because the stay will stop most creditors from trying to collect on the debts you owe them.  Additionally, the automatic stay may be able to stop an eviction, foreclosure, or repossession action.  Having a chance to focus on your bankruptcy without having to fend off debt collection can help you get the clarity you need to assess your situation and develop your long-term financial plan.

Once you file for Bankruptcy, You Can Start Over

Filing under Chapter 7 can mean being done with your case in just a few months.  Chapter 13 repayment will take 3 to 5 years to complete.  Under both options, once the process is initiated, you can begin making choices which support your future.  A positive first step is creating a reasonable and realistic budget for yourself.  By outlining your income and expenses, you can see what you have to work with and structure a plan to live within your means and avoid taking on new debts.   



We have knowledge and experience helping clients achieve a fresh start through bankruptcy and can help.  Please contact us online or by phone if we may be of assistance. http://bestmichiganlawyer.com/contact-us